NET LEASE INVESTMENT OFFERING MATTRESS DIRECT

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1 MATTRESS DIRECT 4680 Interstate 55 North Jackson, MS 39211

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview II. Location Overview Photographs Aerials Site Plan Map III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

4 EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant net leased Mattress Direct property located in Jackson, Mississippi. The property is strategically located along Interstate 55 in a dominant retail corridor. The property is brand new construction outfitted to accommodate Mattress Direct. The new Mattress Direct lease will have seven years. Mattress Direct is a regional mattress retailer with more than 25 stores in Louisiana and Mississippi. The 4,186 square foot building is located immediately off the signalized intersection of Interstate 55 and Northside Drive in the primary retail trade area and within close proximity to Jackson s Medical District. The highly trafficked intersection experiences a combined traffic count of 126,000 vehicles per day. There are over 110,000 people living within a five mile radius of the property with average annual household incomes in excess of $62,000 per year. The demographic surrounding the property is the highest daytime population in the state of Mississippi. Retailers located in the immediate area include Kroger, Whole Foods (only store in Mississippi), Office Depot, Starbucks and a number of national restaurant franchises. Immediately south of the property is Highland Village, the largest specialty shopping center in Jackson featuring lululemon, Kate Spade, Talbots, pure barre and Char Restaurant. Construction is in progress for a mixed-use 21-acre project, The District at Eastover, just two miles south of the Mattress Direct property. The project along Interstate 55 offers a destination featuring boutique shopping, a collection of restaurants, office space, a Marriott hotel, and luxury loft living (261 unites). Less than four miles north of the property is Northpark Mall, a 1.4 million square foot shopping mall with over 120 stores anchored by Dillard s, Belk, JCPenney and H&M. The University of Mississippi Medical Center, St. Dominic Hospital and Baptist Medical Center are all within four miles of the property. Jackson Medgar Willey Evers International Airport is less than ten miles south-east of the Mattress Direct property. Mattress Direct has seven years on their new lease. The lease features two 5-year renewal option periods with rental escalations. The property is brand new construction designed specifically for Mattress Direct. Mattress Direct is a major market leader in the bedding industry throughout Louisiana and Mississippi.

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: New lease Brand new 2017 construction Situated along the primary north-south thoroughfare in Jackson (107,000 VPD) Located immediately off of a highly trafficked intersection experiences a combined traffic count of 126,000 vehicles per day Over 110,000 people living within a five mile radius of the property Positioned in the area s primary retail corridor Demographic surrounding the property is the highest daytime population in the state Retailers located in the immediate area include Kroger, Whole Foods (only store in Mississippi), Office Depot, Starbucks and lululemon

6 PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $1,586,200 Cap Rate: 7.25% Rent Schedule: NOI Escalation Date $115,000 $115,000 1/15/2025 (Option 1) $117,208 1/15/2027 $125,580 1/15/2030 (Option 2) Renewal Options: Two 5-Year Rent Commencement Date: January 15, 2018 (Estimate) Lease Expiration Date: January 14, 2025 Tenant: Mattress Direct Year Built: 2017 Parking: Lease Type: Building Size: Land Size: 20 Spaces NN (Roof & Structure)* 4,186 SF 0.52 Acres * Landlord shall collect an administrative fee equal to 10% of all reimbursable Landlord repair obligations that are not capital in nature. The administrative fee is not included in the NOI.

7 PHOTOGRAPHS

8 PHOTOGRAPHS

9 AERIAL

10 AERIAL

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12 AERIAL

13 SITE PLAN I N T E R S T A T E 5 5 N O R T H ( 1 0 7, V P D )

14 MAP JACKSON MUNICIPAL AIRPORT

15 DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 9,069 53, ,070 Total Households 3,919 21,627 45,786 Income 1-Mile 3-Mile 5-Mile Median Household Income $47,775 $42,812 $40,036 Average Household Income $76,693 $68,141 $62,175

16 MARKET OVERVIEW MARKET OVERVIEW: Jackson, Mississippi Jackson is the capital and largest city in Mississippi. The city is named after General Andrew Jackson, who was honored for his role in the Battle of New Orleans during the War of 1812 and later served as U.S. President. It is on the Pearl River, which drains into the Gulf of Mexico, and it is part of the Jackson Prairie region of the state. The Jackson metropolitan area has a population of 539,057 people according to the 2010 census. Jackson is a major distribution center with a prime location equal distance between Memphis and New Orleans, north-south, and between Dallas and Atlanta, east-west. As a major distribution center, efficient transportation facilities are a must. Seven major air carriers -- American Eagle, Continental, Delta, Northwest Airlines and US Airways Express -- provide service in the Jackson International Airport and Hawkins Field. Amtrak provides daily passenger service to Chicago and New Orleans. The Illinois Central Gulf Railroad and scores of major truck lines provide freight service to all parts of the country. Jackson has a state-of-the-art convention center, the Jackson Convention Complex (JCC) in downtown Jackson. JCC offers conferencing technology, a 380-seat theatre, and more than 110,000 square feet of prime meeting and exhibit space. The complex is near Jackson s arts district, hotels, entertainment and restaurants. Jackson boasts two regional shopping malls, numerous multi-store centers, and a wide array of antiques, gifts and crafts shops. Eleven hospitals, including the nationally renowned University of Mississippi Medical Center, provide diagnoses and treatment for thousands of patients in the region.

17 TENANT OVERVIEW TENANT OVERVIEW: Mattress Direct Mattress Direct is a cultivation of ideas derived over decades of research, observation and experience. Mattress Direct began with humble beginnings opening a single store June With hard work, perseverance and a willing spirit, the company has grown to become a major market leader in the bedding industry. Now, a regional independent with stores in several markets, their gross annual sales have exceeded expectations creating a multi-million dollar corporation. With commitment to advertising, merchandising, training and support, Mattress Direct is poised to expand and provide tremendous opportunities in the future. Website: Locations: 25+ States: 2 Year Founded: 2001 Headquarters: Baton Rouge, LA

18 Randy Blankstein President Jimmy Goodman Partner Dundee Road, Suite 1801 Northbrook, IL